Correlation Between KraneShares Electric and VCLO
Can any of the company-specific risk be diversified away by investing in both KraneShares Electric and VCLO at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining KraneShares Electric and VCLO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares Electric Vehicles and VCLO, you can compare the effects of market volatilities on KraneShares Electric and VCLO and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in KraneShares Electric with a short position of VCLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares Electric and VCLO.
Diversification Opportunities for KraneShares Electric and VCLO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KraneShares and VCLO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares Electric Vehicles and VCLO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VCLO and KraneShares Electric is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on KraneShares Electric Vehicles are associated (or correlated) with VCLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VCLO has no effect on the direction of KraneShares Electric i.e., KraneShares Electric and VCLO go up and down completely randomly.
Pair Corralation between KraneShares Electric and VCLO
If you would invest 2,072 in KraneShares Electric Vehicles on November 3, 2024 and sell it today you would earn a total of 69.00 from holding KraneShares Electric Vehicles or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
KraneShares Electric Vehicles vs. VCLO
Performance |
| Timeline |
| KraneShares Electric |
| VCLO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KraneShares Electric and VCLO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares Electric and VCLO
The main advantage of trading using opposite KraneShares Electric and VCLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares Electric position performs unexpectedly, VCLO can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in VCLO will offset losses from the drop in VCLO's long position.| KraneShares Electric vs. SPDR SP Kensho | KraneShares Electric vs. iShares Self Driving EV | KraneShares Electric vs. Amplify Lithium Battery | KraneShares Electric vs. Global X Autonomous |
| VCLO vs. FT Vest Equity | VCLO vs. Zillow Group Class | VCLO vs. Northern Lights | VCLO vs. VanEck Vectors Moodys |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |